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In events, when you win "500 points towards overall ranking" what does this mean? It doesn't seem to impact general ranking

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no, because it doesn't say you move up 500 places, it says you win 500 points. If someone else that is near you in the ranking also gets that and also works hard training their horses and their seniority is higher than yours etc they will move up more than you. Conversely, someone who is ahead of you and doesn't get this award and isn't actually active on that day will end up underneath you.